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Offline Learner7

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Textile Sector
« Reply #-1 on: November 17, 2009, 12:10:15 PM »
All related to textiles.
« Last Edit: February 17, 2012, 01:33:33 PM by M&M »

Pakinvestorsguide

Textile Sector
« Reply #-1 on: November 17, 2009, 12:10:15 PM »

Offline Learner7

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Re: Textile Sector
« on: November 17, 2009, 12:11:07 PM »
Increase in cotton yarn prices: Textile sector witnessing bullish trend

LAHORE (November 17, 2009): The textile sector is witnessing a bullish trend with rising prices of cotton yarn internationally, especially with unusual demand both in India and China. The basic textile has come out of sluggish trends and booking heavy profits on external deals. This situation has led to the scarcity of cotton and cotton yarn locally, turning many power looms into bad situation besides inviting troubles to the value-added sector.

Offline Learner7

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Re: Textile Sector
« Reply #1 on: November 17, 2009, 12:11:54 PM »
Pakistan gets $300 million yarn export orders

KARACHI (November 17, 2009): When the country is facing a serious crisis of yarn prices the exporters have booked fresh orders of approximately 300 million dollars of cotton yarn, sources in textile industry told Business Recorder. At present, the country is facing high trend in cotton yarn prices, a vital raw material for textile industry, due to increasing export orders.

Offline Learner7

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Re: Textile Sector
« Reply #2 on: November 17, 2009, 12:12:33 PM »
High cotton, cotton yarn prices creating hurdles in meeting export target

FAISALABAD (November 17, 2009): Cotton prices on the domestic market are continuously increasing. Pakistan's yarn is cheapest in the world but the value added sector considers it costlier. High prices of cotton and yarn in Pakistan may not allow the made-up exporters to meet export orders, worth $1.5 billion for Christmas, from the European and American apparel markets. Pakistan's apparel industry would see further decline in exports in case no step is taken to check cotton and yarn exports, concerned quarters said. 

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Re: Textile Sector
« Reply #3 on: November 21, 2009, 02:50:44 PM »
Textile sector R&D claims: SBP to start paying remaining 60 percent
RIZWAN BHATTI
KARACHI (November 21 2009): The State Bank of Pakistan (SBP) has announced that it would pay the outstanding 60 percent dues of research and development (R&D) claims of textile exporters, which have been pending for last 17 months. The Ministry of Finance has already released Rs 5 billion to the central bank for payment of remaining R&D support programme for textile sector.

However, SBP was waiting for the ministry of textile directive and payment procedure. Sources in banking industry told Business Recorder on Friday that SBP, in consultation of the ministry of textile, has described detail procedure for the payment of outstanding 60 percent R&D claims and formally has asked banks to submit the pending R&D claims of textile sector.

Overall some Rs 10 billion R&D claims have bbeen pending since June 2008, Now, on the demand of textile, especially the apparel sector, the ministries of finance and textile have agreed to pay the remaining 60 percent amount of R&D claims.

Sources said that SBP, while issuing directive for payment of remaining amount, has asked the banks that they should submit only such claims for payment of R&DS to the extent of 60 percent differential in respect of such exporters whose 40 percent amount has already been paid earlier.

In addition, each claim will contain a request from exporter providing details of the claim against which 40 percent has already been received by him stating that the balance amount is receivable as full and final settlement of the claim. As per payment requirement each claim will invariably be accompanied by attested copy of ministry of textile industry registration certificate and that claims will only be accepted within the validity period of such certificates, sources said.

SBP has advised the banks that R&D claims should also contain undertaking by the Authorised Dealer for full 100 percent amount of claim and copy of the scrutiny sheet submitted earlier with the claim.

Release of R&D payment to textile exporters will be subject to verification of registration with the list of registered exporters, as provided by ministry of textile industry to the central bank. Sources said that current funds release by the ministry of finance would be sufficient for the pending R&D claims, as about Rs 500-600 million claims has been already rejected on technical grounds.

Offline Learner7

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Re: Textile Sector
« Reply #4 on: November 23, 2009, 11:21:16 AM »
First quarter of year: PTEA expresses concern over sharp increase in cotton, yarn exports

FAISALABAD (November 22, 2009): Chairman, Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar and Vice Chairman Sohail Pasha, in a joint statement here on Saturday expressed their grave concern over unhindered increase in cotton and cotton yarn exports in the first quarter of the year.

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Re: Textile Sector
« Reply #5 on: November 24, 2009, 04:33:28 PM »
Textile Ministry directed to ensure availability of yarn in local market


ISLAMABAD (November 24, 2009): The Standing Committee of the National Assembly on Textile Industries has expressed concern over the non-availability of cotton yarn, and directed the ministry to take measures, ensuring adequate supply of yarn in the local market. The committee met under Haji Muhammad Akram Ansari in the Parliament House here on Monday to discuss the issue of price hike and non-availability of yarn in the country.

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Re: Textile Sector
« Reply #6 on: November 25, 2009, 11:56:30 AM »
Textile products export falls 4.72%
Export of major value?added textile products during the first four months of the current fiscal year declined, thereby giving an overall
impact of 4.72% fall in textiles. There were exports worth USD3.348bn of textiles during July?October period as against USD3.514bn
recorded in the corresponding period last year. Raw cotton and cotton yarn exports increased by 78.93% and 14.06% respectively, during
period under review, export of major value?added textile products declined.

Offline Learner7

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Re: Textile Sector
« Reply #7 on: November 29, 2009, 11:31:47 PM »
Yarn shortage affecting textile sector
November 28, 2009

ISLAMABAD — As the government has failed to resolve the yarn crisis, some 30 per cent work of the textile sector has been affected and majority of the textile units had close down due to the unavailability of the yarn from last few weeks, According to the sources, unavailability of yarn even at the higher prices is getting serious with the passage of every day and majority of the industries in Faisalabad and Jhang and other countries had left the working. If the current crises remain for next few weeks’ country would not available to fulfill its export targets, the sources added.

It is worth mentioning here that in the ongoing year production of cotton in the international market is not sufficient and countries like China are importing it from Pakistan, which is considered one of the main reason for the yarn shortage in the country.

The sources further said that every year Pakistan exports about 25 per cent of the yarn to the other countries, while this year the export expected to be 30 per cent, which could create problems for the local industries.

Meanwhile, different associations of the textile industry believed that exporting yarn is the reason for the unavailability and they are demanding of the government to impose ban on the export of yarn in order to provide commodity to the local consumers. Small Power Looms Association already threaten to observe countrywide strike in the month of December if government did not impose ban on the export of yarn.


Offline Learner7

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Re: Textile Sector
« Reply #8 on: December 03, 2009, 02:26:48 PM »
Pakistan - TDAP fails to register cotton, cotton yarn exports
 
03 Dec, 2009 - Pakistan   

Trade Development Authority of Pakistan (TDAP) has not so far established any setup to register the export of cotton yarn and cotton with it in line with the government's recent directions amid acute shortage of these two raw items on the local market.

According to sources on Tuesday the authority was immediately expected to set up a dedicated cell to register the export of cotton yarn and cotton to assess the impact of their increasing shortage in the local market on the textile garments output. After hue and cry and demands from textile value-added manufacturers and exporters the government however, did not impose a regulatory duty on yarn and cotton export instead asked TDAP to monitor the export of two major textile raw items.

According to sources, the authority is undergoing a reorganising phase which could be one along with other reasons that has held it back so far from doing so. "It may be the long-term plan therefore, TDAP is working on it very slowly. However, export of yarn and cotton is hurting the local textile garments sector badly," said a TDAP official on the basis of anonymity, when contacted.

The spinning millers who want higher volume of the raw items export for the consistent last three years of a lean period in terms of their export. Whereas the textile garments manufacturers and exporters find it difficult to arrange them for garments output to meet the export deadline for Christmas and New Year events in the western world.

The official said that there have been no such directions issued from the authority to its concerned departments to introduce mechanism for registering the exports of these raw materials.

A last meeting of the spinning millers, textile garments manufacturers-cum-exporters and the textile ministry in Islamabad remained inconclusive on the export of yarn and cotton. Textile minister shunned himself from deadlock between both spinner millers and textile garments exporters on the issue of yarn and cotton exports issue and clearly said that he has no control on the either party affair.

Later, on increasing pressure from the textile garments exporters, the government asked the TDAP to register export of yarn and cotton. Besides, a regularity duty, the textile garments exporters also demanded of the President Zardari to curb the export of yarn and cotton through an ordinance.

They want a complete restriction on the export of 32 count of yarn which is the primary raw items for the local textile garments sector, saying that a chaos from the shortage of raw item is likely to reduce the country's apparel exports. They also fear of the closures of industrial units in the country, which could result in a mass unemployment.
 

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Re: Textile Sector
« Reply #9 on: December 04, 2009, 12:46:24 PM »
Cumulative cotton arrivals up by 25%YoY

According to the latest numbers released by Pakistan Cotton
Ginners Association (PCGA), as of 1 December 2009, this
season’s cotton arrivals stood at 10.4mn bales versus 8.3mn
bales last year, translating to a significant growth of 25%. The
fortnightly cotton flows during 16 Nov- 1 Dec stood at 1.16mn
bales, almost flat YoY. Overall, these figures are encouraging
for Pakistan and we believe that the cotton production will
arrive at almost 13mn bales during the current season. As
cotton has a share of 2.2% of the total GDP, the 15%
expected growth during the current fiscal year will boost total
economic growth.

Toshi

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Re: Textile Sector
« Reply #10 on: December 04, 2009, 11:24:37 PM »
TDAP to monitor export of yarn

KARACHI: The Cabinet Committee on Textiles, after reviewing the present cotton and yarn situation and taking into account the export trends and local availability, has decided that the Trade Development Authority of Pakistan (TDAP) should monitor all exports of yarn through a system of registration of export contracts.

In pursuance of the committee decision, the Chief Executive of TDAP, Syed Mohibullah Shah, held a series of meetings with various stakeholders including representatives of downstream industries as well as APTMA and others to evolve a mutually acceptable system of registration keeping in view the principles enshrined in the committee decision.

Meanwhile, a final and joint meeting of all the stakeholders was held here on Friday at the head office of the TDAP in which details of the notification were discussed.

In the light of consensus reached and in pursuance of the decision of the Cabinet Committee on Textiles, TDAP has issued a notification for the registration of yarn export.

Now the exporters of yarn would file with TDAP the Registration Certificate aimed at collecting the information for fair and transparent monitoring of the export trade in yarn.

According to TDAP, a monitoring committee comprising two representatives of downstream and one each from APTMA, Karachi Cotton Association, State Bank of Pakistan and Customs will supervise its implementation.—APP

Offline Learner7

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Re: Textile Sector
« Reply #11 on: December 09, 2009, 05:49:12 PM »
APTMA assures value-added sector of yarn supply  
 
 
 
Wednesday, December 09, 2009
By By our correspondent
 
KARACHI: All Pakistan Textile Mills Association Chairman Anwar Ahmed Tata, expressing concern over registration of yarn export, has said monitoring of cotton yarn is already being done by the association.

Speaking at a press conference at the APTMA House on Tuesday along with other office-bearers, he said registration of cotton yarn export was time-consuming which would hamper shipments. There was no need of registration by government department, he said.

Tata assured the government and the value added sector that yarn was available in surplus quantity to meet requirements of the value added sector and protests by the textile value added industry against non-availability of yarn and proposed imposition of ban on yarn export were without basis.

He said the spinning industry was running and competing in the export market despite a 25 per cent shortage of raw cotton, which was met through import. Requirement of spinning industry was about 15.5 million bales annually whereas average production of cotton in the country was 12 million bales.

Tata said the spinning industry was facing shortage of raw cotton but they never demanded a ban on its export, adding it was expected that about one million bales or 8.5 per cent of total production of cotton would be exported this year.

He said more than 80 per cent of yarn produced in the country was exported one or the other way.

Production of cotton in the world this year was less than last year except for India, which has three million bales in surplus compared to its requirement.

In the local market, he said, cotton price increased by 31 per cent to Rs4,500 per maund from Rs3,400 in just two months.

Total production of yarn was about 2.9 million tons or 240,000 tons per month in 2006-07, three million tons in 2007-08 and 2.6 million tons or 215,000 tons per month in 2008-09, which was the year of recession.

Production of yarn in the four months of this year is around 240,000 to 245,000 tons with the re-opening of 20 closed mills.

Tata asked if the spinning industry could run and compete in the international market after importing about 25 per cent of raw material why not the value added sector could compete in the export arena.

He said the government had earmarked more than 90 per cent of the Rs40 billion incentive package in the textile policy for the value added sector.

The APTMA chairman asked the government not to intervene and take any short-term measures because the consequences would not only hurt the spinning industry but also the value added sector and the whole economy.

The Trade Development Authority of Pakistan, on the other hand, said APTMA had assured 100 per cent availability of cotton yarn in the local market.

A TDAP spokesman, in a statement, said APTMA had informed that total consumption of the value added sector was 120,000 tons per month, which could easily be met and only surplus quantity was being exported.

Offline Learner7

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Re: Textile Sector
« Reply #12 on: December 09, 2009, 05:53:29 PM »
Value-added textile sector to move SC for ban on yarn export

December 09, 2009


FAISALABAD - The value-added textile sector of the country has unanimously decided to file a writ petition in Supreme Court if the government fails to clamp ban on export of yarn within five days.

This was announced at a ‘Textiled Saviour Day Convention’ held here Tuesday under the aegis of Pakistan Textile Exporters Association and Pakistan Hosiery Manufacturers and Exporters Association in which 14 representative textile related associations participated.

The convention was told that competent lawyers are completing home work in this regard. These trade bodies included, Pakistan Exporters Association, Pakistan Hosiery Exporters Association, All-Pakistan Textile Processing Mills Association, Council of Looms Owners, All-Pakistan Textile Sizing Association, Pakistan Cotton Powerlooms Associations, Towel Manufacturers Association, Pakistan Cotton Fashion Apparal Association, Pakistan Ready Garments Association, Pakistan Cloth Merchants Association, Pakistan Apparal Forum, Pakistan Denim Manufactures Association, Sports Wear Exporters Association, Pakistan Ready made Garments Manufacturers and Exporters Association and All-Pakistan bed sheet and up-holstry Manufacturers Association.

Addressing the meeting, Chairman, Pakistan Apparels Association, Jawaid Balwani said that 350 members of the APTMA has made the entire textile sector as hostage. He said that all sections belonging to value added industry is diverting the attention of government toward excessive export of yarn and sky-rocketing prices of yarn and its non-availability in domestic market but nothing materialized so far.

He said that such state of affairs continued, lacs of textile sector workers would become jobless and demonstrate on roads and thus it would not be possible for the government to maintain law and order in the country. He said that these crisis in textile industry are due to faulty policies of the government. He told that Bangla Desh is earning 14 billion dollars per year from value added sector despite the fact that it do not produce cotton.

He said that today’s convention is the first step of the textile sector to save the value added sector and the country and announced that similar Convention would be held at Siakot, Karachi, Lahore and other cities.

 


Toshi

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Re: Textile Sector
« Reply #13 on: December 09, 2009, 09:12:05 PM »
Aptma warns govt against interference in free market

KARACHI: Anwar Ahmed Tata, chairman, All-Pakistan Textile Mills Association (Aptma), has warned that any government intervention in free market mechanism of yarn trade would be disastrous for the spinning industry as it had already suffered huge losses during the last two to three years.

Speaking at a press conference, the Aptma chief claimed that there is no shortage of yarn in the domestic market, but higher prices are disturbing the value-added textile sector which did not cover against their export contracts.

On an average, he said, there had been 50,000 tons production of yarn during the last 10 years, but the value-added textile sector never faced yarn crisis.

He, however, said that owing to cotton shortage in the world market which occurred due to short crop of China by one million bales and short crop of US by 1.2 million bales, cotton prices surged from 50 cents per lb to 80-90 cents per lb.

As a result of this, the Aptma chairman said prices of raw cotton in local market also soared from Rs3,200 per maund to Rs4,500 per maund.

‘If spinners are paying higher price for raw cotton, yarn prices are ought to move in sympathy,’ he added.

As market forces have driven yarn prices higher by 20 to 22 per cent, Mr Tata said it is natural that end product prices would also move higher. But if value-added textile industry entered export contracts without covering their position for yarn, it is their own mistake. He further said that it was a wrong business decision of the value-added textile sector which made them to suffer, if any, losses are being suffered by them and this is a normal phenomenon in trade deals.

He further said that it was out of question that the Aptma or its members would cause any damage to ancillary textile industry because they had been our biggest buyers of up to 80 per cent of yarn produced in the country.

If free market mechanism is allowed to work, he said, within next two months, entire price chain would adjust upward and the value-added textile industry would soon start getting better prices in the world market.

He said over the years spinners had been importing raw cotton to meet the shortage and on an average there had been import of around three million bales. But after importing raw cotton, the spinning industry managed to export and sustain itself.

The spinning industry, S M Muneer, former president of FPCCI, said does not get any subsidy or government support and it has to pay normal mark-up rate against refinance facility given to value-added textile sector.

Even after getting such concessions and facilities in case the value-added textile sector fails to compete, this indicates that there is a serious flaw in their working or business acumen.

Responding to a question, Anwar Ahmed Tata said that the condition of registration of export of cotton yarn would hamper exports as it is time consuming.

He further said that registration of contracts to monitor export of yarn introduced by the Trade Development Authority of Pakistan is already being done by Aptma for the last 15 years by fixing a minimum export price.

Anwar Ahmed Tata assured the government and the value-added sector that yarn is available in sufficient quantity for domestic consumption and the ongoing agitation for imposing ban on export of yarn has no ground.

Toshi

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Re: Textile Sector
« Reply #14 on: December 11, 2009, 10:43:41 PM »
Govt committed to promote textile sector’

ISLAMABAD: Federal Minister for Textile Industry, Rana Muhammad Farooq Saeed Khan has said that government is committed to developing Textile industry and maximum assistance would be provided to boost this important sector of our economy.

He stated this while chairing the 2nd meeting of Textile Policy Implementation Liaison Committee here. During the meeting different measures taken in 1st meeting of Textile Policy Implementation Liaison Committee were discussed.

On this occasion Rafiq Gondal, member of sub-committee, constituted in 1st meeting of committee gave detailed briefing regarding selection of associations for registration process.

Moreover, Zubair Motiwala, head of sub-committee also briefed about the issue of granting drawback to the EPZ-units.

On this occasion, different ideas and point of views were shared to the related matters.

Moreover, different suggestions and recommendations were given during the meeting.

Members of the committee deliberated upon various issues regarding Textile Policy Implementation. Likewise, updates on the registration process of yarn export also came under discussion.

Members of committee appreciated the efforts and progressive measures taken by the Ministry of Textile Industry.

Offline Learner7

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Re: Textile Sector
« Reply #15 on: December 12, 2009, 01:16:10 AM »
High yarn prices will effect the profitability of textile sector.

Another damper, hike in electricity prices. :(

Toshi

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Re: Textile Sector
« Reply #16 on: December 12, 2009, 12:50:14 PM »
Government not to ban cotton yarn export

KARACHI (December 12 2009): The federal government has turned down the proposal of value-added textile sector for imposing ban, or regulatory duty, on export of cotton yarn. Sources in the Ministry of Textile told Business Recorder on Friday that despite strong and continuous protest by the value-added textile sector, the federal government has decided not to impose a ban or regulatory duty on export of cotton yarn.

They said that Ministry officials have clearly conveyed this message to the representatives of value-added textile sector that the government has no plan to ban export of cotton yarn, as the government has already taken some preventive measures to curb export of cotton yarn.

"On the protest of value-added textile sector, the government has initiated monitoring of cotton yarn export by registering yarn export orders, and the Trade Development Authority of Pakistan (TDAP) is getting cotton yarn export orders registered before shipment of the commodity for past one week," they said.

They said that the government is closely monitoring export of cotton yarn and decided to take some action in case of massive increase in the export of commodity. However, imposition of a ban and regulatory duty is not included in the under-consider actions.

"In case of high growth in the cotton yarn export, the ministry of textile may impose a ceiling on its export by binding the exporters not to export the commodity more than the last fiscal year export. However, they said that there is a massive space for export of yarn and the ceiling may be imposed in the third or fourth quarter of the current fiscal year, if the export of commodity would surge to new peaks.

Sources said that some positive results of registration of cotton yarn export orders have been witnessed and the prices of yarn were gradually stabilising in the domestic market for last few days. Cotton yarn prices in the domestic market have stabilised during last three days as the spinning mills have been forced to get registered their export orders with TDAP.

"Although cotton yarn prices are stable in the local market since last Tuesday, the price of 20-single cotton yarn is still at Rs 880-900 per 10 pounds, which is all time high price in cotton trade history," sources said. They said that a meeting of textile policy implementation committee was held in Islamabad three days back, chaired by Textile Minister Muhammad Saeed Khan. The meeting was attended by representatives from value-added textile sector, besides government officials.

During the meeting, value added textile sector again demanded imposition of ban and regulatory on export of cotton yarn. However, the ministry turned down the demand and said that TDAP was already monitoring export of yarn and if the government observed that export was higher than last fiscal year, a ceiling would be imposed.

Offline Karuli

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Re: Textile Sector
« Reply #17 on: December 12, 2009, 03:09:29 PM »
Government not to ban cotton yarn export

KARACHI (December 12 2009): The federal government has turned down the proposal of value-added textile sector for imposing ban, or regulatory duty, on export of cotton yarn. Sources in the Ministry of Textile told Business Recorder on Friday that despite strong and continuous protest by the value-added textile sector, the federal government has decided not to impose a ban or regulatory duty on export of cotton yarn.

They said that Ministry officials have clearly conveyed this message to the representatives of value-added textile sector that the government has no plan to ban export of cotton yarn, as the government has already taken some preventive measures to curb export of cotton yarn.

"On the protest of value-added textile sector, the government has initiated monitoring of cotton yarn export by registering yarn export orders, and the Trade Development Authority of Pakistan (TDAP) is getting cotton yarn export orders registered before shipment of the commodity for past one week," they said.

They said that the government is closely monitoring export of cotton yarn and decided to take some action in case of massive increase in the export of commodity. However, imposition of a ban and regulatory duty is not included in the under-consider actions.

"In case of high growth in the cotton yarn export, the ministry of textile may impose a ceiling on its export by binding the exporters not to export the commodity more than the last fiscal year export. However, they said that there is a massive space for export of yarn and the ceiling may be imposed in the third or fourth quarter of the current fiscal year, if the export of commodity would surge to new peaks.

Sources said that some positive results of registration of cotton yarn export orders have been witnessed and the prices of yarn were gradually stabilising in the domestic market for last few days. Cotton yarn prices in the domestic market have stabilised during last three days as the spinning mills have been forced to get registered their export orders with TDAP.

"Although cotton yarn prices are stable in the local market since last Tuesday, the price of 20-single cotton yarn is still at Rs 880-900 per 10 pounds, which is all time high price in cotton trade history," sources said. They said that a meeting of textile policy implementation committee was held in Islamabad three days back, chaired by Textile Minister Muhammad Saeed Khan. The meeting was attended by representatives from value-added textile sector, besides government officials.

During the meeting, value added textile sector again demanded imposition of ban and regulatory on export of cotton yarn. However, the ministry turned down the demand and said that TDAP was already monitoring export of yarn and if the government observed that export was higher than last fiscal year, a ceiling would be imposed.

Thanx Toshi Bhai

Toshi

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Re: Textile Sector
« Reply #18 on: December 19, 2009, 11:31:21 AM »
Capping yarn export to result in closure of 400 spinning mills: Aptma
RECORDER REPORT
LAHORE (December 19 2009): Chairman All Pakistan Textile Mills Association (Aptma) Punjab, Gohar Ejaz, on Friday said that quota restriction on export of yarn would lead to closure of 400 spinning mills, consequently rendering thousands of employees jobless.

Addressing a press conference here at Aptma Punjab office, he said that Aptma has conveyed its stance to the government and value-added sector clearly, and established its case with authentic statistics that any move to restrict the exports of yarn would be taken as worst decision on part of the government.

Any quota restriction on exports of cotton yarn would play havoc with the industry and the government should leave it to market forces, he added.

According to him, the textile spinning industry has procured its inputs on international prices & facing anti-dumping duties on import of its raw material. The measure/move to curb export of yarn would be tampering with Free Trade Mechanism, which would not be in the interests of cotton growers, spinning industry & textile value-added chain and would adversely affect export and national economy.

"There are surplus quantity of yarn in the market. Yarn prices have dropped by 10 to 15 percent in last few days. There is no issue of availability of yarn but the value-added sector is not willing to pay price," he added.

Gohar said the industry was already passing through a worst situation due to unprecedented load shedding of electricity and gas, high mark up rate and restrictions on import of raw materials, a phenomenon that has multiplied its cost of doing business. The spinning & weaving industry not entitled to concessionary finance, duty drawback or any other incentives, he added.